iiNet Plans $350m Buying Spree

Pumped with a $350 million war-chest and with significant changes to its boardroom line-up, ISP iiNet is planning major acquisitions as part of a three-year strategy to move beyond being a "dumb-pipe internet provider".

Chairman Michael Smith said the company aims to lock in its new three-year strategy by June 30. The plan follows a board-level expedition to Silicon Valley, led by former CEO Michael Malone, who has since resigned.

In a previous attempt - ultimately unsuccessful - at breaking into new fields, iiNet last year sought to buy NZ-owned fibre network operator AAPT for $350 million.

It lost out to David Teoh's TPG outfit, which outbid it with a $450 million offer.

Following the departures of Malone and former Internode boss Simon Hackett (the latter to join the NBN Co board), iiNet has appointed two new board directors, Patrick O'Sullivan and Paul McCarney.

McCarney is said to have experience as a consultant, investor and entrepreneur in the digital technology and marketing space.

O'Sullivan is a former Optus CFO, and has also worked as chief operating officer at Nine Entertainment.